The Nigerian government has withheld statutory local government allocations due to Osun State to the tune of N201.962 billion, SaharaReporters’ review of Federal Accounts Allocation Committee (FAAC) data has shown.
The review covered a 15-month period spanning March 2025 to May 2026.
The figures show that ₦131.5 billion meant for the state’s 30 local governments was withheld between March and December 2025, while an additional ₦70.462 billion was not released between January and May 2026, bringing the cumulative amount withheld to ₦201.962 billion.
An analysis of the FAAC data indicates that Osun was due to receive ₦11.9 billion in March 2025, followed by ₦11.2 billion in April, ₦11.7 billion in May and ₦12.1 billion in June. The allocation increased to ₦12.8 billion in July, ₦14 billion in August, ₦14.4 billion in September, ₦15.8 billion in October, ₦14.6 billion in November and ₦13.09 billion in December, bringing the total withheld in 2025 to ₦131.5 billion.
The withholding continued into 2026 despite ongoing legal disputes. Findings show that ₦14.060 billion was withheld in January, ₦14.502 billion in February, ₦12.8 billion in March, ₦13.7 billion in April and ₦15.4 billion in May, amounting to ₦70.462 billion within the first five months of the year.
In total a sum of N201.962 billion was withheld between February 2025 and May 2026, based on official revenue allocation data.
The prolonged withholding of the allocations has remained the subject of legal and political disputes between the Federal Government and the Osun State Government following the February 2025 local government election in the state.
Following the election, which was challenged by the ruling All Progressives Congress (APC), the Federal Government withheld the statutory allocations meant for the councils.
The legality of the action later came under judicial scrutiny, with the Supreme Court holding that the withholding of the funds was unconstitutional.
In the lead judgment delivered by Justice Mohammed Idris, the apex court declared that the seizure of the allocations amounted to “grave breach of the 1999 Constitution.”
Justice Idris further held that “the hand of the federal government was soiled” by its decision to withhold the allocations and directed that the funds should be “directly channeled to local accounts.”
The court also rejected contempt allegations filed against the Osun State Government by the Attorney-General of the Federation, holding that he was “in more contempt than Osun by not paying the fund as required by law.”
However, the court faulted the Osun State Government for initiating the suit without demonstrating that it had obtained the consent of the affected local governments.
According to Justice Idris, “there was no evidence that Osun Attorney General was briefed by the local governments.”
In a dissenting opinion, Justice Emmanuel Agim maintained that the Osun Attorney-General possessed the authority to institute the action and described the Federal Government’s conduct as being “in bad taste because it was capable of crippling the activities of the councils.”
The dispute has also generated parallel litigation. In September 2025, the High Court of Justice of Oyo State granted an interim injunction restraining United Bank for Africa (UBA) Plc from releasing statutory allocations belonging to Osun’s 30 local governments pending the determination of the substantive suit.
The case remains one of the legal issues surrounding the prolonged withholding of the councils’ allocations.
In March, residents staged protests at several United Bank for Africa (UBA) branches in Osogbo and Ilesa, accusing the bank of complicity in the withholding of the local government funds.
Earlier this year, Governor Ademola Adeleke said the funds were essential for paying the salaries of primary school teachers, nurses, other health workers across the state’s 332 primary healthcare centres, local government employees, members of traditional councils, and retirees.
The Osun State Government has accused the APC of orchestrating the withholding of the funds. The APC has denied the allegation, insisting that the February 2025 local government election was improperly conducted, a claim the state government strongly disputes.